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Healthcare Business News
 

Doc pleads guilty to fraud conspiracy charge


By Jaimy Lee
Posted: February 22, 2012 - 8:00 am ET
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A Florida physician pleaded guilty to one count of conspiracy to commit mail and wire fraud as part of a scheme to buy and re-sell prostate cancer drugs to at least two drug wholesalers in Ohio and New Jersey.

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The Justice Department said in a new release that Dr. Michael Schoenwald, the owner of Urology Associates in Hollywood, Fla., and two co-conspirators sold more than $1 million dollars of Lupron, which is used to treat advanced prostate cancer, from March 2007 to November 2009.

Schoenwald purchased Lupron at a discounted rate from Abbott Laboratories, and later sold and shipped it to Gregory Pfizenmayer of Foley, Ala. Pfizenmayer then created false drug pedigrees and sold the Lupron to wholesale drug distributors, according to documents filed Jan. 27 in the Southern District of Ohio.

The Lupron was eventually sold to Bell Medical Services in Marlboro, N.J., and Masters Pharmaceuticals in Cincinnati.

Pfizenmayer pleaded guilty to one count of conspiracy to commit mail and wire fraud in 2011. At that time, the Justice Department said that more than one physician who received drug discounts re-sold prescription drugs to him.

Florida, which is one of 29 states with drug pedigree laws, prevents wholesalers and healthcare providers from being licensed at the same address, in order to prevent providers from selling drugs to other wholesalers.

The purpose of drug pedigrees is to track the sale and purchase of drugs. The recent drug shortages and ensuing Congressional investigations into so-called “gray market” drug distributors, which have been criticized for their role in alleged price-gouging for drugs in short supply, have raised the debate about the need for federal drug pedigree requirements.


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